In 1956 President Eisenhower learned that Britain, France, and Israel had invaded Egypt ex post facto. The president was not pleased about the news and took immediate and decisive action: he instructed the Federal Reserve Bank to orchestrate a run on the pound and block the International Monetary Fund from the stabilizing the currency.
By holding Britain's currency hostage, based on a scenario he created, Eisenhower sent word by his actions that the U.S. would not assist in their economic bailout unless there was an immediate withdrawal from Egypt.
One of the lessons learned from this rather dubious affair: there can be no independent foreign policy if someone else controls your currency. It also begs the contemporary questions: how independent is American foreign policy? And how close is China from possessing the ability to do to the U.S. what Ike did to the British?
The rest is here ...
OK. So file this one under "When you find yourself in the hole, the best strategy is to stop digging."
We've borrowed ourselves to the hilt to pay for a war that wasn't necessary, the objecetives of which keep changing to the point that its militarily unwinable and China owns the debt. Iraqi oil was suppose to finance the war from the get-go but we're years, maybe even decades away from seeing revenue from Iraqi oil.
Still think the economy is rosy? Well, it is ... IF you ignore all the negatives. The administration tells you it's great. The Republicans have a problem, though ... its called "selective reality".
Their answer? Lets borrow some more!
With the value of the dollar falling (roughly 40% against the Euro since 2002), how long do you suppose the Chinese will be happy to watch their loan values drop like a rock before starting to call their markers in or selling short and taking their investments elsewhere?
A question aside: Who's been in control of
our government from 2002 to present?
Yeah ... but it's probably Bill's fault, right?
If the Chinese sell off our debt that they own, who do you suppose might buy it? To whom would YOU like to owe all that money? Who do you want to be in a position to influence our foreign policy, Mr. Strong-On-National-Defense?
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